Subsidies exchange policyholders prepare for their 2014 tax returns
Nevadans and Americans throughout the country who have purchased subsidized health insurance from healthcare exchanges should have received a Form 1095‐A from their state or federal exchange. This Department of the Treasury form is used to provide the insureds purchasing health insurance on the exchange with coverage, premium subsidies and household information needed to file their 2014 tax returns.
Exchange policyholders will use this information to complete Form 8962 that is filed with their regular tax returns this spring. The 2014 tax filings will require subsidized Americans to document that their estimated advance premium tax credits were based on their actual 2014 incomes.
Individuals who purchase subsidized insurance through the exchange are responsible to maintain a reasonable estimate of their annual incomes. This will assure that their normal tax returns are not substantially lower or higher than usual.